Lawmaker submits bill on VAT on all goods from foreign marketplaces
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Danil Getmantsev, the chairman of the tax committee of the Verkhovna Rada, has proposed a package of bills that would impose a value-added tax (VAT) on all goods purchased from foreign marketplaces, regardless of their value. However, import duties will continue to be levied only on goods valued above 150 euros. Goods valued below 45 euros sent by individuals for non-commercial purposes will remain exempt from taxes, the MP wrote on Telegram.

The VAT rate in Ukraine is 20%.

According to Getmantsev, the proposed legislation has garnered support from various business associations, including the American Chamber of Commerce in Ukraine, the European Business Association, the Ukrainian Business Council, the IT Ukraine Association, the Retail Association of Ukraine, and the Ukrainian Chamber of Commerce and Industry.

Getmantsev highlighted that the draft amendments to the Customs and Tax Codes were "fully developed by the relevant business associations."

To simplify the import process, the proposal suggests implementing a mechanism similar to the Import One Stop Shop (IOSS) used in the European Union, where VAT can be paid directly by the supplier or marketplace. Additionally, a new customs declaration for low-value goods (analogous to the European H7) will be introduced.

"Payment of VAT by the supplier of the goods or marketplace will eliminate the need for additional customs payments by the buyer during customs clearance and will facilitate the acceleration of customs procedures," Getmantsev wrote.

Ukraine currently has a state-established customs limit of 150 euros. This means that all shipments valued at 150 euros or less, which do not contain prohibited items, do not violate copyright laws, and have properly completed accompanying documents, are not taxed and do not require customs clearance. If a shipment costs less than 150 euros, it is directly sent to the recipient's address without delays at customs.
  • In July 2024, the Ministry of Finance proposed imposing VAT on imported shipments valued up to 150 euros (excluding postal items valued below 45 euros sent without payment and not intended for sale). This provision was included in a bill to increase taxes but was later removed.
  • Finance Minister Sergii Marchenko stated that imposing a tax on shipments valued up to 150 euros would help close shadow schemes used by online stores for importing goods.
  • In October 2024, Getmantsev announced the preparation of a separate bill on taxing international shipments and personally requested lawmakers to remove the tax exemption for shipments.